CapiCal Industries Declared a Quarterly Dividend of

Multiple Choice

CapiCal Industries declared a quarterly dividend of $.56 to its 250,000 common shares from quarterly earnings of $306,250. It has no preferred shares. Universal Hotels declared a quarterly dividend of $.35 to its one million shares on quarterly earnings of $1,225,000, net of preferred shares. Both companies are trading at a P/E ratio around 14. What is the dividend payout ratio for each company?

A) Capical $0.20; Universal $0.46
B) Capical $0.46; Universal $0.20
C) Capical $1.83; Universal $0.82
D) Capical $0.82; Universal $1.83
E) Capical $0.82; Universal $0.11